the report finds cities like indianapolis and buffalo also in the top 20. the court's conclusion -- innovation comes from all corners of the country regardless of region and sector. but sue, i imagine some people thought that anyway. back to you. >> i think so. >>> speaking of innovation, let's go back out to san francisco with brian sullivan. brian? >> reporter: sue, thank you very much. just getting details on what we expected. the new connecter. in other words, this thing where you plug your iphone in to charge it in to your computer, whatever it might be, that is indeed changing. it is going to be much, much smaller. ostensibly to have more room for the battery. we talked about that longer battery life. we are getting a change in the connecting plug on the iphone 5. also talking about the camera, 38 mega pixels. much better low-light resolution. changes in the camera. more microphones. now three on the phone. the big thing for me is that connecter. i know there is a lot of hype around the phone. it is likely going to be a big hit like almost every other

even sex in the city paid a visit to tech serve. >> got you a computer. could be bad ram. we'll keep it for a couple days and run some tests. i'll call you if we find anything? >> if? >> i dropped it and the whole thing shattered. >> i had a hard drive crash. so i'm here to get it fixed. >> for the particularly heartbreaking cases like lost photos or documents not backed up, the service desk is ready with a box of tissues for the most unfortunate cases. >> you would be amazed at how many people do not back up their data. less than 10% to 15% of people ever religiously back up their data. >> individual customers are only a fraction of the company's bottom line as more corporations adapt to apple products, companies like tech serve are in high demand to distribute, install and service those computers, a service apple does not provide. >> we're seeing people just move directly away from the larger more desk laden devices. >> as the number of apple products in consumers' hands grows, the need to fix also mushrooms. tech serve has seen it all when it comes to creative ways to b

perhaps the most expensive airport to inner city cab ride in the world is in japan. a one-way fare from nor rita international airport from the heart of tokyo will cost you $174. 20,000 yen! i don't know whether they tip over there, maybe they do or don't. i figure the tip there is another 30 bucks on that fare. >> maybe the airport is just further away. >> you know, i don't know that. i've been there but never driven from norita into the city. >> next up, we willful up on that organic study and look how it may impact stocks like whole foods. a top analyst tells us what he thinks about the organic sector. don't check out, coming up. [ male announcer ] let's say you need to take care of legal matters. wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100%

hbo got new people to sign up for the service with the lure of sex in the city and "the sopr o sopran sopranos". >> i think our original programming will play a role why people join in and stay on netflix. >> to see what the ceo of comcast, time warner andy any go to cnbc dam. be sure to catch this tonight at 9:00 p.m. eastern. >> to jim, now. if you want to play the media sector, give me your best pick. >> first of all, disney. and i'm not just choosing it because of the movie over the weekend. that plays into it, though. people seem willing to part for entertainment right now. they make money in a lot of different ways besides movies. netflix, i don't particularly like netflix and it's mostly because the market over the long terms seems to hate them. i wouldn't say short it right now, but if it breaks under that 60 level that was the low from a couple of weeks back, i would want to be short. the third thing, comcast, which is the parent company of this network, to me that seems a better play. because of their size and ability to bundle things together to more gradually take people f

they belong on the battlefield of war, not the streets of our cities. i believe the majority of gun owners would agree we should do everything possible to prevent criminals and fugitives from purchasing weapons. >> three weeks later, six people were killed and four others injured at a sikh temple in wisconsin. the president expresses outrage and makes vague reference to the need for change. we learned over the weekend the department of justice did create a set of recommendationes it beef up background checks after the giffords shooting but those recommendations went largely ignored. this time, it is not just the president saying, when the victims are innocent children, it's time to move from conversation it action. tyler? >> hampton pearson, thank you. >>> to the markets now. apple dipping below $500 a share for the first time since february. in premarket trading, this after citi downgraded stock. the company did sell better than expected 2 million iphone 5s in china over the weekend. the best smart phone launch ever in that country. what will the futur

the case-shiller report, down to a new low. the city composite down to a record low. after two years of improvement in the numbers, david blitzer says, we might have reentered a period of decline. now, all real estate is local, of course. let's drill down on some of the cities. detroit was the lone gainer on annual returns. but up just barely, .5% from a year ago. atlanta wins the dubious honor of the worst, down nearly 13% annually. here in d.c. where we had seen some gains recently, we're falling again, down 1.6%. miami was one of just two cities to see monthly gains, phoenix joining that and las vegas continues to bleed despite real sales competition there for foreclosures. the hud secretary pushed for nonfannie and freddie borrowers through the fha. it would need congressional approval and most say it's likely not going to get it. he said the full documents and details of that big a.g. robo-signing foreclosure settlement deal will be filed later this week. also a nice discussion going on on the blog about whether now is the time to buy a home. realtycheck.cnbc.com

the big question is is citi's turnaround for real? mary thompson is taking a deep dive if you will into the latest results. >> the bank's better than expected results by a strong performance in international operations, strength in trade finance and in its investment bank. earnings excludeing charges for the tielgtening of credit spreads as well as gains on investments came in 11 cents ahead of estimates at $1.11 a share. excludeing those charges, profits also rose in its three main business units. of note strength in equity business and investment bank with the bank crediting the improvement to changes in personnel. in the quarter, loan growth rose 12% linked to gains in loans in latin america and asia. cfo saying loan demand in developed economy like the u.s. and europe is flat to waning. as for its outlook, citi noted the operating environment improved in the last quarter, but the ceo says there's much macro uncertainty. then also saying the bank is in talks with the federal reserve to resubmit capital plan. the fed rejects most of

the state's second largest city and home of the citadel. and a notch on the rust belt and home to several fortune 500 firms. welcome gentlemen all to "power lunch." mayor battle, i'm going to start with you. because diana just left off with housing, let me ask you, how is the state of housing in your neck of the woods? and do you see a bit of a recovery there? >> our housing's been doing very well. we've done very well the past three years. 35% of our housing across the market is new home sales. and you don't see that in a lot of other markets throughout the u.s. we've been very, very fortunate. we've gotten through this very well through the recession. and we're seeing our community come back. >> is that because prices did not run up as dramatically as they did in other parts of the country? or is there another reason for it, do you think? >> i think a lot of what you're seeing right now is that people are downsizing. people are taking a little bit less. people are doing a little bit more savings. and it all comes back to consumer confiden

[ male announcer ] get more access with the citi card. [ crowd cheering, mouse clicks ] >>> our next guest was mildly surprised he says about the fed's decision to launch qe3. the question is did they get it right. bob michael is the global chief investment officer for jpmorgan asset management's global fixed income and currency group. so why were you mildly surprised? what surprised you? >> i think the exclusive focus on mortgages was a pleasant surprise. i think beforehand there had been a lot of speculation they might either do nothing and just extend the language of when they would raise interest rates to 2015. >> what should we read into the fact that the purchases are going to exclusively be mortgages, not long term treasuries, not anything else, apparently? >> i think it speaks to two things. i think first of all ben bernanke has talked a lot about how important the housing recovery is to the u.s. and this clearly targets housing. i think there's also a nod to congress and the administration here. they've talk about housing so you have to accept the politics of it. >> who's go

. >> sticking with the citi story, what does mr. pandit's departure mean for citi's stock and it shareholders? here with the wall street take is fred cannon. he upgraded citi's stock to outperform on october 1st. welcome. you upped to out perform. did anything that happened today change either of those things in your view? >> not at all. in some ways while it's too bad to see mr. pandit go, what's going on today with the leadership on the board i think it will accelerate what's going on and make citi probably a better stock over the next five to section monix months. >> whose company is this now? >> both. they're coming in as a teemg. clearly the board is in control here. and clearly they think corbett's the right guy to execute the strategy. the strategy has been set for a while. it's about can they get the capital deployment from the fed with the stress test. >> do you know mr. corbett? i had one source telling me he's a long team employee there. >> i do not know him. i do know mr. o'neal. >> let's talk about the outstanding issue

citi has an underperform saying the traders are building at a 60% premium and everyone is chasing them. no question now the builder stocks are on a tear. on average shares of the home builder have trip will, tripled since the 2009 trompt the concern though is that this exuberance is because we see big percentage jumps in new orders, but we forget just how far we fell. we are still well below the historical average on housing starts. ty? >> diana, thanks very much. now to the politics of the fiscal cliff. that set of tax increases and spending cuts looming at end of the year. while a headline-grabbing survey last week said the cliff is a big worry for investors, for the political parties there may actually be something to gain by going over it. eamon jafers is here with an explanation. >> when they designed the fiscal cliff last year, lawmakers here in washington design it had to be so awful and terrible and bad that nobody in their right mind would want to go over it. well, it won't surprise you, or maybe it will, to learn that here in washington some folks are reconsidering that and t

we'll talk to the ceo of city national. and another sign of times from the once mighty kodak. the camera that bought cameras to the masses many decades ago saying today it's getting out of digital. back in two. ( laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] now there's a mileage card that offers special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪ okay. what's your secret? ♪ [ male announcer ] the new united mileageplus explorer card. get it and you're in. >>> coming up on "street signs," it could be the beginning of america's nuclear revival. first on cnbc the ceo who wants to build the first nuclear power plant in over 30 years. is now the time? and a stunning announcement from kodak. they have investors really scratching their heads. and a look under the radar, little known stocks doing big business. that's all next

citi upgrading the stock from buy to neutral. they say 2012 should surprise to the upside. they point out three things. lean inventory, gross margins could have more upside than that firm has modeled and the spring assortments look better as well. the things that seem to be looking up for gap. back to you on that note. and the yahoo! story, obviously, remains pretty interesting as well. >> sure. thanks, scott. >>> biotech is clearly on fire this year, outperforming the broader market. the s&p biotech index is up 13%. the nyse arca biotech up. alkermes seeing gains of 20% over the past year. joining us now in an exclusive interview from the bio ceo and investor conference in new york city is richard pops, the ceo of alkermes. thank you for joining us on cnbc. let's cut straight to the chase if you may. you're obviously at the cutting edge of your industry. on your third attempt, you've now managed to get the once weekly diabetes drug that you're partnering with past the fda. >> that's right. >> why did it take you so long to get that through? what's wrong here in the united

we got off the phone with the city. they have not yet filed the paperwork. two cities exploring bankruptcy. one state university professor tells "the washington post" one in five california cities are at similar risk. now, stockton has until friday to officially file chapter 9 after the council voted last night approve a budget which closes a $26 million deficit, deals with a $700 million worth of debt by doing things like suspending payments and fazing out a retiree medical benefits. it was a long night. >> the decisions that you are making tonight are effective throwing a grenade in my life and destroying everything i have worked for. >> stockton had the same attorney that helped vallejo proving chapter 9 can work. after three years of slashing public services and dealing with creditors, though prostitutes flooded the town and crime spiked but most importantly, unions took them to court for breaking contracts and the unions lost. a new law passed here in california forcing cities in to mediation before bankruptcy, something stockton did. mediation failed b

drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪ so what i'm saying is, people like options. when you take geico, you can call them anytime you feel like saving money. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance. >>> >>> after alcoa beat the street, what kind of earning season do you expect? here's what america said in the finance.yahoo.com poll. f 15% said it will be strong. 52% said mediocre and 33% said weak. what's coming up on "street signs"? >> thank you. hp has been the dog of the year for the dow and on "street signs," we are going

not so much, unfortunately, in the heart of where we're seeing the hardest hit areas, kansas city, chicago, dallas. all in the rbread basket. mike has more on the perspective. >> it's astounding. let's take you back to last summer. we had huge drought in the southern plains. texas, the worst. costliest in texas history. high pressure sitting over the southern plains. this year, however, it's expanded and intensified and slightly shifted off to the north. unfortunately, it has severely impacted the bread basket of america. all of the plains and the crop-producing states in the midwest. the moisture flow in to houston. so let's take a look in particular houston and break down the numbers for you here. last year, 10.5 inches of rain. to point, 38 inches of rain. 3 1/2 times this year compared to last year and looking at state of mo m and sitting like st. louis. last year, a plethora of rain, 34 inches. this year, just 59% of that and that's had a huge impact on the corn and the bean crops in the state of missouri. go back to the drought in the '30s, the dust bowl. 80% of the country was consi

one potentially the chairman of citi, dick parsons, may be preparing to step aside. the other is tom monotag at bank of america is reorganizing his investment banking leadership group. what should we make of those two stori stories? >> i don't think parsons' news is a surprise. i think some people thought this would happen. the question is who takes his place. and does citi have an independent chairman along with ceo. as far as monotag, i thought all three of those men are staying at the firm. one just got a promotion. >> david, let me turn to you. a note your highest among the banks you follow goldman sachs rather morgan stanley. let me get your reaction to how helpful it is that morgan stanley seems to be in the poll position in getting the lead of this ipo involving facebook. >> well, i think in terms of tangible financial note no deal makes that big of a difference. but potentially morgan stanley has been over the course of the last couple years it's had some issues with the market looking at their eu position. looking at the mortgage mess a couple years ago. and

, 'tis the season, cities also the tax regime. couples can now give up to $10 million tax free, next year, that money changed to only $1 m the tax rate on that goes up. should do it now most important advice, cool off. sudden wealth can ruin your life, expose to you all kinds of scams and lead to overindulgence. people say you should put the check in the bank and ignore it for three to six moment. use that time to get your financial bearings and create a real plan. the plan is critical. you should start by hiring a financial adviser, figure out your spending goals, $327 million sounds like a lot but you buy a yacht and a g 550 plane, pretty soon you are done. one of an income plan, you can create a portfolio to meet the needs, balanced stock, bonds, alternative. after that, you can bite diamond tiara and the jet r i think you would look great in a tiara or jet, sue. >> i don't think my luck will hold up. i have never won anything in my life h >> a dollar and a dream. >> a dollar and a dream. yeah. that kind of rich. thanks, robert

we attended the annual meeting of the chamber of commerce in the capital city rekrentd cently. u.s. diplomats have called it a choice between u.s. interests and u.s. values. critics say the regime there is brutal and corrupt. >> and it's very upsetting to see where the country's going because it is a very rich country in terms of its oil and gas. but this wealth isn't going to the people. >> while the average worker makes a little more than $400 a month, the family of the president is worth millions. that is his eldest daughter, 25 years old. we'll ask her about her money tonight on the premier of "filthy rich." you can see she lives a little differently. >> she looks like it. can i ask what are the critics suggest we do when it comes to this kind of issue and these kinds of countries? >> it's a difficult dilemma. >> yeah. >> that this all points out, because the critics say, look, if we disengage from these countries, others will engage. so we can be a force for good, a force for transparency, but it needs to be transparent. they need to know where this oil is coming from, where it

. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates. [ male announcer ] ylord of the carry-on.. sovereign of the security line. you never take an upgrade for granted. and you rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i deserve this. [ male announcer ] you do, business pro. you do. go national. go like a pro. >>> welcome back. here's what's coming up next on "street signs," the great land grab. home builders are rushing to buy up land, what does that mean for the housing market? the fomc minutes are out. what the fed really thinks about the economy right now. and the dirtiest shirt in the clean laundry. we'll look at the worst stocks in the best sectors. that is next on "street signs." now back to sue on "power lunch." >> thank you very much, brian. see you at 2:00. a new headache for billionaire hedge fund heavyweight phillip falcone. the fcc bl

despite the horrible power outages in the rest of the city. that race is on despite the destruction, despite the disruption. brian schactman is covering the controversy for us. brian? >> reporter: michelle, generators are 20 yards from where i'm standing right now. they're huping. there is actually a third one that's a back-up that's idle right now. people that are against this race for those reasons, they're fuming. the race -- they're trying to counter that. they actually start the "race to recover" and pledged $2.5 million-plus to go toward recovery efforts. they're asking runners to donate $26.20. of course you get the symbolic stuff there towards the recovery efforts. as for those runners, we actually asked them with all the anger against this race being run, whether they were actually worried about mistreatment on sunday. >> i run new york city marathon for times so the crowd is great. everybody support the runners so we hope that this year should be the same good fiber and good energy, everything perfect. >> it wouldn't surprise me if t

the rebels say they were able to shoot down one of the army's helicopters in the capital city of damascus. you can see the helicopter catching fire and crashing to the ground. all of it caught on video. a few moments ago, french president hollande called on syria's opposition for a provisional government and said he would be the first to officially recognize it. simon? >>> sue, we have four major mergers this monday. in banking, mgt buying hudson city banc. expanding the reach in to the eastern part of the country. in the car rental business, hertz buying dollar thrifty. that values dollar thrifty at 87.50 a share, an 8% premium to its closing price friday but you could have seen the deal coming. in tech, ibm buying kenexa. the move aimed to boost ibm's because strategy solutions and iac says it's ask.com unit buying from "the new york times" for about $300 million in cash. >>> ahead this afternoon, twitter has a new fight on its hands. plus, the impact of apple's major courtroom victory over samsung in the patent trial of the century. it's already impacting apple's stock but that's likel

a city councilman said the building cost the city $1 billion a year in the tax loss and calls this project outrageous. >> you're going to get so many people -- you're going to crash the site. >> i hope so. >> robert, thank you very much. appreciate it. >>> coming up in the next hour -- street signs has top apple analyst gene munster from pipalafterry. he looks at what an ipad mini could mean for the stock and the one thing that he thinks could keep apple going for years to come. ♪ [ man ] when i'm in my zone... every move i make is a statement... ♪ ...that inspires me to make my mark. ♪ [ male announcer ] the all-new lexus es 350. ♪ [ male announcer ] the all-new lexus es 350. wooohooo....hahaahahaha! oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no you're not. i know. you know ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. >>> checking the markets for you -- we are just a fraction off

it was followed by a ceremony at the city hall. the parade is expected to have a positive economic impact of up to $38 million for the city of new york. they're crossing to river for an afternoon pep rally at the giants' stadium in new jersey. >> that is going to be quite an afternoon. governor christie will be there for that. >>> straight ahead, almost 60% of the s&p 500 have reported their earnings. more than half beat estimates. that's not bad. not great, though. can this kind of profit picture support a rally? the chief equity strategist, one of our favorites, at ubs is going to weigh in. >>> here's the action in the s&p sectors today. most of it solidly in the green. the exception, the industrials, which are down a little bit more than .1%. and telecom is off .25%. we're back in two. want to prot. right. but... home security systems can be really expensive. so to save money, we actually just adopted a rescue panther. i think i'm goin-... shhh! we find that we don't need to sleep that much. there's an easier way to save. geico.

she's katherine wilde, the head of the partnership for new york city. she is not necessarily a household name, but she he hosting some important meetings up in new york city between business leaders and political leaders. because of her convening power she's been able to bring together an astonishing list of folks. look at some of the political figures that she has brought to her table just over the past two years, including treasury secretary tim geithner, house democratic leader nancy pelosi, senator rob portman, eric cantor, erskine bowles, alan simpson, all attending meetings convened by katherine wilde also on the business side, some of the co-hosts of these events include names lie rupert murdoch, ted mathis, lloyd blankfein and lloyd hutchens of silver lake. i asked her why with all of this experience, did she think there would be a deal this year. >> i'm confident that there will be some kind of -- there will be some path toward a solution by new year's eve. the chances are it will not be done because these are going to be complicated negotiatio

guys, should citi have told shareholders that's how the land lay? >> well, first, it is perfectly fair if mr. o'neill decides he wants somebody else to convince the board to do it. what i have a problem with here is mr. pandit came out and said this was my own decision. simon and i were talking about this the day it came out. it was nonsensical. now we find out. i agree with harvey pitt. he said given a choice between lying or simply not saying anything, i think mr. pandit should simply say nothing about this. >> i don't know if there's a way to make this a great story from their perspective. but, hey, i don't think that's the way anybody would want to go. it doesn't look good, as bob just said from pandit's perspective. but i think there are a lot of questions about whether they could have communicated better about what was really behind this. like the truth. >> guys, let's finish up with apple. it was supposed to be the big one in corporate earnings this week, reporting of course ultimately weaker than expected ipad sales. the white ipad minis are

he said the fed's concerns focused mostly on the fact that citi asked to return too much capital to its shareholders. listen in. >> we didn't fail to achieve the capital levels that are required. it's just that given the capital plan and the amount of capital we want to give back to shareholders in that capital planning period, the fed felt a little uncomfortable with that. >> pandit repeated his comments from yesterday saying that citi will consider resubmitting the capital plan for 2012. however, it might wait until 2013 to ask for another dividend increase. guys, back to you. >> mary, thank you very much. >>> meantime, citi rival bank of america selling its wealth management business outside of the u.s. kate kelly is on that story. what's behind the move, kate? >> i think a couple of things are going on here. i think primarily it's an effort on ceo brian moynahan's part to execute on the plan new bac he unveiled last year. which is essentially a streamlining effort, a cost cutting effort. they're going to be getting rid of noncore assets. they've been doing that for the last year plu

that has to be part of the solution here in the city. he's threading the needle holding the line against the teachers especially on issues like accountability, giving principals more ownership in terms of removing those teachers who are not performing, having teache erers make the grade in s of student test scores and that's tough to do in this day and age. the issue is less about money and more about accountability. rahm emanuel is trying to hold the teachers to a strict line there. >> do you have a sense, phil, as to how long this strike will be able to continue before parents draw the line in the sand? >> only a few days. you can already see it. there is a palpable feeling in this city from a lot of parents who are fed up with the mayor, but also fed up with the teachers. they're looking at this and saying, come on, really? you can't come to an agreement? you've known for some time when school was supposed to start. you should have come to an agreement by now. i think after a couple of days both sides will really feel the heat that th

the city's building department is scrutinizing the application for the program. this city has asked 157 for more information. xtel, the developer, won't tell us what the nature of those questions are. they haven't responded to our calls for comment. it is unclear whether these tax breaks will be accepted or not. now again, xtel didn't immediately return my e-mails and calls. read all about it at this -- this story and more on indiedwealth@cnbc.com. >> let me ask you a quick question here. these were credits, weren't they, that were being transferred from other buildings but applied to this one? >> correct. they bought a certificate which allowed them to help fund affordable housing in the brooklyn, bronx and our boroughs. in exchange, they got the affordable housing tax breaks in this big tower. the question is did you really get a one-for-one payoff, did it really benefit the city as much as the tax breaks they were receiving. >> and then do these tax breaks actually then go down to the individual buyers of the units? it is the developer who got the tax breaks.

he's on 11,000 acres in strong city. guy, welcome. good to have you with us. how are you crops right now? >> well, we are primarily in the grass business to feed cattle and we have had about a third of our normal rainfall, and so, needless to say, things are at kind of a dire situation. >> what does that mean in terms of the amount of grass that you can till and the price you get for it? >> well, we don't till any grass but i will tell you that our protein level from the first of july until the 23rd of july dropped one full percent to levels that it should be in late september or early october. and this means that we've got to supplement these cattle to keep them alive and hope we get enough wart so that they can drink. otherwise they will not reproduce. >> your cattle then are deeply affected by the quality of the grass. these are solely grass-fed cattle then, i take it? do you supplement with corn which must be more pricey than it has been for you. >> we do supplement our cattle. we use a protein pellet at the present time. well, let me back up. the cost of

and 2010 chinese visitors contributed $877 million to the new york city economy. that's nearly $3,297 per person per visit. >> and courtney's with us now on more of china's super shopper. you mentioned 33% are women right now. but who else are the big spenders? >> there's this group of what we're calling newcomers. a group of people who never before spent a penny on any luxury items before the recession. afterwards they're finding this perception of value. they're not spending frivolously. they're seeing handbags and shoes as investment pieces. they may be making purchases less frequently, but there are more of them. it's a younger crowd than your previous more affluent luxury shopper. >> it's their version of durable goods. >> something like that. >> thanks, courtney. >> thank you. >> it's going to be a great piece tonight. reminder, you can see the whole story on china's super shoppers on the premier of our cnbc original documentary, luxury boom, the big -- the new big spenders tonight at 9:00 p.m. eastern time and pacific. >>> and up next, most investors have s

and citi saying their prostate cancer drug could be approved in the second half of 2012. back to you. >> thanks, seema. straight ahead facebook is no longer on private market, but the $1 billion mark zuckerberg shelled out could be a game changer. >> the hot issues in the private market and what's the fallout from the loss of facebook shares? we'll ask sharespost ceo on the other side of the break. man: 1939 -- my parents ran across an ad for a hot dog cart. my mother said, "well, maybe we ought to buy this hot dog cart and set it up someplace." so my parents went to bank of america. they met with the branch manager and they said, "look, we've got this little hot dog cart, and it's on a really good corner. let's see if we can buy the property." and the branch manager said, "all right, i will take a chance with the two of you." and we've been loyal to bank of america for the last 71 years. we have two car insurances that we're going to have you taste. the first one we're going to call x. go ahead and take a sip, and then let me know what the baby thinks of it. four million

one of the earliest snowstorms in the new york city vicinity ever. it's just one week after sandy. eight inches in queens. 13 inches in frehold, new jersey. big snowfall totals. the snow is on the trees and the trees came down. that's why the additional power outages. but if we take a look at the radar, this is all kind of breaking down at this hour. the actual storm center is not far from nantucket where they had winds to 65 miles per hour. notice how the precipitation is kind of breaking up and winding down. the storm center is almost done. that's right, we're almost done with this one. now let's talk about the next one. it is brutus and it is going to affect the northern rockies in the next several days with 6 to 12 inches of snow. northern montana, blizzard warning but overall the united states undergoes a warming trend in to the week ahead. >> i'm going to take that as a silver lining, todd. thank you very much. >>> let's turn to the markets now. we've erased our earlier gains. one day after the dow's largest drop this year, the dow is down 62 points on the session. the s&p is

i tell you, it comes back to the direction of the state and the direction of the city and what the elected officials are doing. and it's got to be all about jobs. it's got to be welcoming business. it's got to be creating an environment where businesses want to come into california. we frankly have an environment here where businesses are fleeing california. and it's a real problem. it's an attitude change. and i think we have problems in sacramento that need to be changed. and until they change, i don't think we're going to come around the corner any time soon with that employment rate coming down. >> a lot of people think that perhaps you're the man to do that either through a run to become mayor of los angeles, and your name also banding about as perhaps governor of the state. >> well, listen, i'm honored by that. i appreciate it. i also like driving growth through business. so we create a lot of jobs and a lot of revenue because of new projects. we've got about $750 million worth of new projects in our pipeline. so we're going to be creating a lot of jobs in los angeles and in californ

citi stock up 3%. steady throughout the day. back to jou. >> thank you very much, mary. the new ipad will be available next friday. that's what we're hearing. we continue to monitor that program being put forth by apple. up next, yesterday for a lot of us it was pretty much gut check, but the s&p has just about doubled in three years. so are investors especially those saving for retirement finally feeling a bit better about the financial situation that they're in? >> we will have the exclusive results of wells fargo's investor op michl survey on the other side of this break. like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ] the all-new 2013 lexus gs. there's no going back. >>> coming up next on "street signs," their stunning success makes market headlines, but is apple's rise actually bad for the market? in fact just moved negative today. and also snappon tools a big winner in 2012. what's their ceo's read on the economy? all that and beer, bourbon and tattoos a trifecta of profit for your portfolio. >> thank

morgan stanley, goldman, citi group, all the big guys are down 1% to 3% today. we'll keep an eye on this as we go into the close of the quarter. the other group that had a great quarter and has been rolling over, depends on which stocks you're talking about. they're starting to biforkate. lennar held up well in the last few days on a terrific earnings report. kb lower, we're starting to see splits in the group as it looks like some are winning over some of the others. finally, i wanted to show you the vix. people saying it's gone from 14 to 17 this week, isn't that a big deal. i keep insisting it's not. you don't want to look at the cash vix, sue, at 17. you want to look further out. look all the way into october. it's at 26. these numbers have not changed here that much in the last several weeks. and that's what i mean when i say bottom line here is volatility going out more than the front contract really is not that high. sue, back to you. >> very good observation. thank you very much, bob. now some breaking news. the results from the $29 billion auction in 7-

big media stocks getting mauled on the heels of a big downgrade at citi group earlier today. disney, discovery and cbs among the groups. senior media analyst with standard & poors remains mostly bullish. welcome so much to "power lunch." >> thank you, julia. >> so jason at citi, he's very concerned about the problems in the cable industry saying the ratings are down, looking at what that must mean for advertising. do you see problems in terms of the cable industry? and what does that mean for your outlook on the sector? >> well, we share some of those concerns, but we believe that despite the valuation runup that we've seen in this sector, there's still some room for further rally. to be sure we're spreading some digestion of recent gains we've seen from the media center and we expect that q-1 earnings could in fact lead to good expectations. when all is said and done, we still believe the fundamental and macro indicators are still. >> strong on cbs, buy on discovery. is there a concern about the cable channels bleed over into those stocks? >> well, those recommendations are

we are counting you down to the three best cities for the stock market over the past year. today we are in the third place city for the market. stocks here averaged a return of 20%. i'm not going to give too much away but i will say this -- the stands behind me, they sometimes cheer for a guy that went to virginia tech. find out who it is. the companies. a bunch of awesome guests. mandy and i are coming up on "street signs," kicking off the recovery road trip, three cities, three days. it is going to be delicious. at least it already has been for me today and you'll see why. coming up. >> thanks, brian sullivan. we'll tune in at the top of the hour. >>> more now on the big story of the day. the holiday shopping season and what it means for retailers and shoppers with tablets stealing the show. so far this holiday season, consumers have a lot of options. jon fortt is in san jose looking at the models, the niche they're going for and some of the pros and cons of tablets. jon? >> reporter: tyler, lots to cover. lots of tablets, so many i can't get through them all. but let's l

two of the biggest names in the most widely held stocks around, citi and apple topping the news this hour. headlines aren't good. apple right now is down about 4%. back in bear market territory, down 22% from their historic intraday high of $705 set back in september. right now shares are trading at $551.33. bob pisani joins me on the floor of the nyse. it started with this idc report citing the fact that they would lose their dominance in the tablet market in probably the next couple of years, and then the margin requirement story. >> it is a little complicated. i just want to address this issue first of the rally that we've got because i think that is sort of what's moving the overall market. there is some vague talk in washington that there may be some republican members starting to break ranks with the leadership on the tax issue. there's talk now that some republicans might be willing to accept higher taxes for the wealthy. this would be a break-through. we're monitoring that. now to what sue was talking about on apple. there are some firms raising margin requirements. i think t

on the downside first solar sinking after a downgrade. that stock down 5.5%. monster worldwide down 4.5% after citi downgraded it citing competitive pressures from linkedin and career builder. let's get more details, mary thompson. hey there. >> hi, brian. the weakest having no impact on the markets. the dow actually ticked up a bit here up 63 points. although another light volume day. 1.6 billion in consolidated trade. that is fairly low volume. something of course we've seen throughout this year. the s&p is up 7% this year. we've seen this very slow and steady march upwards in the markets even amid very low volume. quick check of the dow movers. the story is financials. these are among the better performing stocks today. telecom, industrials and consumer discretionary. utilities really the only one that's been moving down at all during today's session. and within the dow components predict bli bank of america and jpmorgan leading the way foll followed by pfizer. united technology up too. reports say the company is thinking about selling its flow and compress

little shout out to the quad cities. i think united health care is a great addition. i think it is really going to help investors get o know the companies so we shall see the stock price move up. >> it also definitely helps the dow better reflect the broader economy which is always good. >> indeed it is. gentlemen, thank you very much. >>> sue herera, in the next hour of cnbc, why you may want to kick it old school when it comes to investing in social media and media stocks. oh, yes, street signs stylin' next. ♪ [ male announcer ] the first look...is only the beginning. ♪ ♪ introducing a stunning work of technology. ♪ introducing the entirely new lexus es. and the first ever es hybrid. this is the pursuit of perfection. and the first ever es hybrid. i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's lik

recovery in west cracks and closure of the carson city refinely acquisition. the west cracks. >> you know, let's not talk about that. >> 89% higher. what do you think of this? >> i think it will rally with oil commodity prices. i think it is a positive stock. i agree. >> you like that. let's move on to goldman sachs. upgrading yum brands. goldman noting quote that recent soft china same store sales and resulting uncertainty provide a good entry point, shares of yum down more than 6%. >> inflexion point. doesn't that say it somewhere? >> inflexion? >> china, inflexion point. >> they need antibiotics. >> no, not that kind pf. >> oh, not that kind of one. >> so the stock will move based on increasing internal consumption. >> so you like the upgrade? >> i like the upgrade. >> jason is upgrading vera bradley. nice bags. very nice. we expect top line and continue that margin are are at a positive inflexion point. >> forget the inflexion point on this one. >> i think is concerning stock for me. they have been guiding revenue on see things down. they have a problem wi

some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. ♪ ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. >>> let's reset the markets and see what's going on. we continue to climb higher. dow industrials closer to 120 points higher. s&p gaining by nearly 14. the vix just under 20. seeing modest gains in crude and gold as well. weakness in the dollar. look at 109-year note, just under 2% right now. look at some winners and losers today. not too many surprises here. not a great thishd quarter but double digit sales there. and jm smuckers down on its earnings as well. >> jackie, i'll take it over here at the nymex on the headlines that the greek swap deal may be imminent. we saw the euro turnaround. and a big reversal in gold. held support this morning and wound up higher to close up for a second day in a row. part of it moving up along with oil, which

he went on to say they could contaminate the water supply in major cities or shut down the power grid across large parts of the country. do you agree with that? >> i don't know if it is that extreme but i think the risk is absolutely there and i think we need to be prepared and every business -- it is not just the government agencies, it is not just the infrastructure of companies. every individual have to be prepared against that because every individual can be part of an attack. >> what does the united states need to do now to upgrade its infrastructure security? >> i think there is a lot of new technologies which needs to be implemented. i think we just -- the reason i'm saying everyone of us, because these attacks are not carried by foreign government attacking our infrastructure. it's these foreign -- or these organizations, wherever they are, infect tens of thousands or millions of computers and these agents create the attack. each one of us can be part of that attack without even knowing it. so i think we all have to defend ourselves and every company at least with my business

fitness that used to be a circuit city. are we looking at the future of best buy in these two stores? >> i think so. i think you're going to see several hundred stores over the next ten years that are going to end up being unproductive real estate. and in 20 years, all their stores. >> all their stores gone, he said. but will the moves, the tentative ones, be for best buy? and what did they say about big box retailing overall? michael is on with us on the phone. i would say good to see you, but i don't. at any rate, do you think what best buy did yesterday is a step in the right direction? is it enough? >> a step in the right direction, yes. i mean, i guess it's a good thing they watch cnbc and they saw your documentary, so they're taking advice from cnbc. >> they're taking it from you, michael. you really were the backbone of that argument. >> but clearly not enough. and i think, you know, if anybody goes back and listens to that conference call, there was no acknowledgment whatsoever that they're losing share to the inter

there was a lot of attention to mitt romney's comments in london about the preparation of that city for the olympics and generated a lot of blowback and may be more legs to what he told abc in israel about his taxes which as you know is a live issue on the trail. democrats pressing him to release more. he's only released one year, 2010 paying ining 13.9% tax rat. david muir of abc asked him if he ever paid a lower rate than 13.9. here's what mitt romney had to say. >> i haven't calculated that. i'm happy to go back and look but i my view is i have paid all the taxes required by law. i don't pay more than are legally due. frankly, if i had paid more than are legally due, i don't think i would be qualified to become president. >> now, both halves of that formulation i think are going to extend the questions about taxes, both the fact that he said he couldn't remember whether or not he had paid a lower rate than 13.9% and also just disclosing the fact he was audited and his aide told me this afternoon he paid no fine or penalty from that audit but that's going to fuel the obama campaign's

then there's that new york city vicinity area in terms of the snow. it's a big wild card because we're not sure it is going to change over to complete snow in flos flosh new york. if it sticks, it will bring down more tree limbs and cause more power outages. there will at least be scattered power outages all over again coming in to the northwest suburbs of new york and up into new england. that's the very least. we'll be watching this every step of the way throughout the course of the afternoon. >> we do not need this. thank you very much. appreciate it. >>> courtsny reagan now with a "market flash." >> related to what todd was just talking about, shares of exelon hitting a new 52-week low on the heels of this new nor'easter that's going to slam us right when we're down. we can see more power outages. the stock was lower. we're ticking higher but still hit a 52-week low down more than 1.5%. >>> thank you, courtney. we're following the weather. we're following the market with the dow off o 264 points and that's off the lows. >>> the election meanwhile

" to network, in new york city many head to what's known as the core club, a private club. in a "power lunch" exclusive, let's meet the founder. welcome, great to have you with us. >> nice to be here. thank you. >> you started your business back in about 2005 or '06 as i'm recalling really at one of the high water marks in the recent u.s. economy. we are just talking about how economically sensitive how some restaurants are in the hospitality business, how sensitive have you found your business to be? >> well, we're not predictive of economic indicators, but i do believe we feel the vibrations of what's happening in the economy. in 2009 we dipped probably like everyone else. and we grew about 5% in 2010. and up 15% in 2011. in january year over year we're about 25%. so i feel pretty good about that. >> a lot of private clubs, and i speak from some experience here, golf clubs in the metropolitan area of new york, have had to discount their membership fees. have you had to do that? and while we're on the topic, what are the membership fees and what do people pay in dues? >> i

the currency and gold analyst at citi index says an interesting phenomenon is developing with those high oil prices. the gold-to-oil ratio is coming down. it's now at a 6-week low. and historically he says that has been a bullish sign for global stock prices. over to you, sue. >> thank you so much, bertha. stocks kind of moving sideways right now. markets are waiting for that approval, perhaps, of another bailout package for greece. so how do you invest given all the macro risk out there? let's bring in katie nixon, chief investment officer for private partners at northern trusts. more than $163 billion in assets. welcome back. >> thank you, sue. >> how do you handle the macro risk you have? you have so much money under management. you have to deploy it. you look for a little alpha in the portfolio, but how do you handle the headwinds that are out there? >> we've been focusing really on some of the tailwinds that are out there as a counterbalance to the obvious headwind of the greek crisis. these tailwinds include some pretty positive fundamentals. we've had a decent earnings season cert

of 2013 and they got approved by the federal reserve to raise the dividend, all the talk about citi, jpmorgan, bank of america, keep your eye on american express today, just shy of $56, up another 0.75 today. >>> the investor appetite for high yield or junk yields continue to grow thanks in part to cheaper paper, wider spreads, higher yields relative to treasuries and broader equities. kevin oversees the tiaa-cref, and a three-year return of more than 21%. you were just saying, kevin, welcome, first of all, that you like to be disciplined and more selective, so your corner of the junk market isn't toxic, it's a little more rarefied, right? >> that's correct. >> like what? >> well, we focus on companies that have good competitive positions. for us the key is free cash flow, so we're looking for companies that regardless of exactly how the economy performs, they'll generate the cash flow and they'll be able to pay back their debts. that leads us into the bb and "b" part of the market, over a five year period, the bottom tier of the market. the cccs it's closer to 50%. we are looking fo